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AEP Will Send Customers Some Savings From Federal Tax Cut

Electric cat
Wikimedia Commons

Ohio utility regulators have approved an agreement returning proceeds of the federal tax cut to customers of Columbus-based AEP.

In approving the deal Wednesday, Public Utilities Commission of Ohio Chairman Asim Haque called it "good news."

Haque attributed the deal to commissioners' insistence that utility companies begin tracking what they were over-collecting when using delivery rates developed under the previous 35-percent federal tax rate, rather than the new 21-percent rate.

AEP agreed to return customers $278 million for certain tax deferrals over 25 years and another $178 million over six years. The company also will add $20.4 million in tax savings per year toward its next rate adjustment.

The agreement also calls for AEP to contribute $1 million annually from 2018 through 2021 to assist low-income customers.